Thursday, November 20, 2014

I’ve been doing this for almost 20 years
and like many in our industry, I am sick and tired of having to justify the
value activation and events deliver! It’s true that many clients not only get
it, but also get it enough to reap the benefits of the results. But many other clients
don't.

By many a yardstick, our business is the
toughest business in the marketing communication gamut… yeah, yeah, everyone
thinks they have a tough life but seriously, from a business perspective,
running an activation/events business is pretty damn tough. If you were to
analyze our business with Michael
Porter’s 5-forces model, you’d pretty much decide to shut down the agency and
open a kirana store. Everyone who can put pressure on the agency, and many can,
to get their pound of flesh does.

Agencies and the industry are unable to
invest heavily in key elements like quality of people (creative, strategy,
planning, technology), creative resources, technology, SAFETY, vendor
development, quality of materials, training of temporary manpower…. the list is
endless.

Unfortunately, what is playing out is a sad
game of short termism that is leading to deep long term damage to the industry.
With the almighty squeeze that the 5 forces are playing out on agencies in the
business, its becoming harder and harder for agencies to invest in what’s good for
the business and for clients’ brands.

In such a scenario, the stakeholder who
should support and bolster the agency is the client; because it's the client
whose brand and asset is at stake and who stands to gain the most from the
agency thriving and delivering better results. Many clients, unfortunately, are
looking at quick gains to get the most out of their money NOW, rather than
looking at investing in the agency and its resources to be able to get value
for their brand in the medium term.

How can clients help activation/event agencies?

First, develop ‘non-short-term’
relationships with agencies, and make some level of financial commitment to
such relationships. Such commitments allow the agency to have a medium term
view and invest in resources that would then contribute positively to clients’
brand building.

Second, Instead of calling for multi-agency
pitches, which is counter productive because agencies are investing in pitching
rather than the process of building clients’ brands. Trust in your agency’s
ability, give them more information and ‘gyaan’ about the brand, and make them
a strategic partner. It will pay back in dollops!

Third, respect intellectual property of the
agency. Just because an idea has no physical form does not mean it belongs to
nobody. If your agency does not have the ability to execute the idea you have
presented, “buy” the idea and get another agency to execute it (if you like).
Investing in intellectual property develops stronger relationships and develops
the industry at large.

Fourth, pay fairly for the value you are
getting. Negotiation and driving value is all very well, but no agency or
business is going to take on projects that make a loss. If the client is going
to beat the price down, the difference will show in quality, for sure. You may
get a great value deal 1 time out 10 but you will end up paying for it the
other 9 times.

HELP us help you, I say to all clients,
help us to deliver better, deliver more, deliver faster for your brands.